Turk Telecom’s Privilization is Moving

In a press conference Transportation Minister Binali Yıldırım gave extensive information about the privatisation process. Minister Yıldırım announced that the information process about Turk Telecom will begin tomorrow.

Metin Kılcı, the president of the Turk Telecom privilization board, Erkan Akdemir, Chairman of the Turk Telecom board and Mehmet Ekinalan, General Manager of Turk Telecom attended the press conference, held by transportation minister Binali Yıldırım in the Turk Telecom culture center.

Minister Yıldırım who also answered questions at the end of the conference emphasized that the privatisation process is at a turning point. Minister Yıldırım who pointed out that a two phase model will be applied to the Turk Telekom privatisation process, the first phase being supplying information, the second phase the tender.

Minister Yıldırım announced that the information process about the block sale of minumum 51% of Turk Telekom starts tomorrow, potential investors who wish to participate in the”information process” should register by May 20 th 2004 at the Privatisation Board.

Minister Yıldırım stated that in the mentioned process potential investors will be given information about Turk Telecom’s operational, financial and legal position, no price offer for Turk Telecom will be collected at this phase of the process.

An agreement of confidence will me made with the participants of the information process as important financial data of Turk Telekom should not be revealed to third parties.

Mentioning the change of law which enables modifying laws concerning the ministry of transportation minister Yıldırım said that with this proposal they will undergo a change in the 45 percent foreign capital limit which is a negative limitation in the privatization of Turk Telekom process. As Minister Yıldırım points out with the approval of the proposal at the TBMM General Assembly, all the restraints concerning the foreign capital in the privatization of Turk Telekom will be eliminated. Furhermore he adds that the the golden share will remain without any doubt regarding the trading activities of the firm.

Participation fee is twenty thousand American dollars.

In response to the questions of the journalists, transportation Minister Binali Yıldırım said that participation fee for the information process will be twenty thousand dollars. Minister Yıldırım,

“Everyone paying the participation fee will take part in the information process. However undertakings which have serious legal issues with the Turk Telekom may be restricted.”

Minister Yıldırım answered the question we asked as Turk-internet.com

“Turk Telekom is the only operator without any debts. Will this be taken into consideration in the process of value determination ? Is the real estate going to be included in the value determination ?” as follows:

Everything will be taken into consideration but it is out of question to list them and make it known to the public.

Concerning the question whether or not foreign investors will go into the tender alone, Minister Yıldırım said “ there is no obligation. They can go together or alone. However, the foreign investors are looking for a turkish partner in order to ease their business.”